They will have to "print" more and more steems to pay off all the new user's content, there will be new contents everyday and more users everyday.And on top of that they will have to print more steems to pay all the steem power users How can the currency retain its value in the long run? I understand the steem power system where funds are locked so they can't be sold but this is bandaid solution to an hyper inflation system
Please enlighten me
EDIT: Summary
The question i asked is How does powering up steem protect SP holders from hyperinflation?
The answers i got so far from most involved in the thread : SP holders will be protected from hyperinflation by creating even more inflation ( not a joke thats actually how steem was designed )
Lots of biased comments too ( steem balance of every users is viewable assuming they have same username ) most of the trolls in this thread are heavily invested ( no surprise here)
If anyone, even the steem devs can answer some of the concerns i welcome them, i had no ulterior motives when starting this thread but the trolling is so strong that i lost my cool on some comments, however my opinion on steem is still the same, it is a great concept but i fail to see how it could work with such hyperinflation and no real incentives for people to buy steem.
Steem is no more inflationary than Bitcoin. Only 10% of market cap is redistributed each year.
Thank you for clearing it up. the amount of disinformation on this topic in particular is a little absurd. On the internet, data is our only weapon. Correct data is a rare breed. Thanks for your transparency,
With Love,
a #Bitshares fan
hi @dantheman, please check my latest post out. I wrote it to you and the other whales. Maybe you will agree with it :)
https://steemit.com/steemit/@steemitpolitics/6rqxnc-to-the-whales-get-your-head-out-of-your-ass-and-vote-good-content-up-you-are-harming-steemit
Inflation is not harmful if purchasing power is protected. It's really only purchasing power that matters. Purchasing power is affected (or not) depending upon who the newly printed money is allocated to. Here's what I mean:
Let's suppose that the Federal Reserve announced a "two for one" dollar split, where every single holder of dollars could cash them in in exchange for two dollars. So, the money supply just doubled, right? We have 100% inflation, right?
Technically yes, but practically no. In this case the new money was allocated to holders of existing money. Yes, things are now twice as expensive in dollar terms, but EVERYONE has twice as many dollars. So, purchasing power is preserved. Nobody's purchasing power (the amount of goods and services they could purchase with their stash of dollars) declined.
And this is how Steem works. Holders of Steem Power are awarded 90% off all new Steem created. So, yes, there may be twice as any Steem over the course of the year, and all else being equal prices of goods and services may double over the course of a year when priced in Steem, but the purchasing power of the Steem Power holders was largely unaffected. They experience only 10% inflation at the end of the day (since 10% of the new Steem is awarded to authors and curators). And, if the Steem is growing in value by more than 10% per year (and any exponentially growing technology based upon Moore's Law or the Law of Accelearating Returns should be able to do that), then they won't even experience the 10% inflation in absolute dollar terms (since the price of their Steem will have gone up by more than the 10% impact of inflation).
Notice how different this is from fiat inflation facilitated by the Federal Reserve. With fiat inflation, new money isn't allocated to existing holders (savers). Rather, it's allocated all to the Fed who must then "inject" it into the financial system via below-market insider loans to cronies. In the end, savers see their purchasing power eroded. Not so with Steem.
I totally agree with you on inflation - this are not the main points here when it comes to steemit. I think the most difficult thing will be editorial work as you could clearly see last days when masses came all topics were full spammed of unrelated content. This tag-spammed posts even dominated the top categories and nobody of valueable voters seems to do some editorial work.
As you are (what I would call) a whale, may I ask you for some feedback on the actual upcoming spam topic and editorial work? I wrote an article today and need some statement from "valueable" voters (aka whales) on that topic.
https://steemit.com/money/@hastla/why-whales-and-dolphins-have-to-start-work-for-steemit-or-lose-their-whole-investment
Have you read the white paper?
given that the STEEM economy will become larger than steemit there will be new demand for STEEM so even the hyperinflation is taken care of because demand will increase. I already accept STEEM on my website http://www.hepays.com when somebody like coinbase builds it into their API / IPN i would use it. so steem is not just for steemit. there is also an economy which will be build around it.
Now that's inspiring Daniel
yup I had the same thought, I think the currency will grow only whilst new people join, after that it can only really depreciate?
Worrying thing is they have shut down new sign ups for a while
NO cheating here it's not school that u can say u show me ur notes i will show u my notes stop spamming :P
He is a bot ajay